Less Than Perfect Credit is OK with the FHA!
FHA loans allow relaxed underwriting guidelines when it comes to their minimum credit scores. Just like any transaction the credit score alone is not the only determination in issuing a final approval. Other characteristics of the loan the borrower needs determine a final approval, but there is good news for FHA borrowers. To get a mortgage with a down payment as low as 3.5 percent, the borrower needs only a credit score of 580 or higher. With those above 620 and 640 getting the best terms at most lenders.
Those with credit scores between 500 and 579 must make down payments of at least 10 percent.
People with credit scores under 500 generally are ineligible for FHA loans. The FHA will make allowances under certain circumstances for applicants who have what it calls “nontraditional credit history or insufficient credit” if they meet requirements. This is many times having no credit or no-score. Global Home Finance Inc. is experienced in originating this type of loan. Ask one of our FHA loan specialists if you qualify by calling 866-923-3222. Or